I have a few investment accounts with Fidelity and for the most part I am pretty satisfied with them. I’ve had these accounts for several years now so I wasn’t surprised when I received a credit card offer in the mail the other day. I get tons of these and I usually rip them up and throw them out after glancing at the envelope.
The other day, as I was sorting through my mail, I noticed an American Express offer from Fidelity. I immediately was curious because I was wondering what Fidelity could offer me via a credit card. Surely, it’s not air miles or hotel points or gas rewards. No. It wasn’t any of that. It was BETTER.
- No annual fee
- 2% of the money you spend on that credit card goes straight to your Fidelity IRA account
- No limit on the amount of money that gets put into your IRA
- You also have the flexibility to use your points for WorldPoints reward options
- You can also deposit the money into a non-retirement Fidelity account or a 529
- You only need to spend $2500 in order to redeem
This is a pretty sweet deal. You don’t have to think about re-allocating money from your budget to help save for retirement. Just make your purchases and know that you are saving for retirement at the same time. I’m not saying you should forget about contributing to retirement after you get this card. But if you’re not doing all you can do for retirement, this will definitely help.
Note: The APR on this card is 13.99%. The card is really not worth it if you plan on having balances. Credit cards can be great things to have and personally I prefer to use them over cash because of the rewards you get through them. But always always always pay off your balance in full every month! If you can’t, then this is not the card for you.
I currently use Amex for my purchases and use the points from my purchases for items you can buy through the Amex Membership Rewards program. It’s really not the best card out there so we will be switching cards in January. But for now, a regular Amex card is what I use. We earn about 1 point for every dollar we spend on this card. 2,500 points earned will get us a $25 gift card at a variety of stores. Now, compare this with the $50 that would be deposited into your account when you have 2,500 points on your Fidelity Amex card. It’s double the rewards plus returns on your investments. Now THAT is smart!
